Here are some of the key points from the Government’s September mini-budget statement and what it means for our Members...
Taxes
- The basic rate of income tax will cut to 19% from April 2023, meaning 31 million people will be better off by an average £170 a year.
- The 45% higher rate of income tax will also be abolished.
- The National Insurance increase of 1.25% implemented in April will be reserved from 6 November, which will save money for both workers and businesses.
Other Impacts
- The planned increases in duties on beer, cider, wine and spirits are cancelled.
- Immediate reduction in Stamp Duty with the threshold for no stamp duty doubling from £125,000 to £250,000. First-time buyer exemption also increased to £425,000. The expected impact is that 200,000 more people will not pay any stamp duty.
- The energy price guarantee and £400 grant are expected to cut the average household bills by £1,000 this year.
Businesses
- The corporation tax rise from 19% to 25% in April has been cancelled.
- The Government is discussing setting up investment zones with 38 local areas in England, including Greater Manchester, which will offer lower taxes to stimulate investment.
The package represents a tax cut across a range of people and businesses with the aim of stimulating growth, which will hopefully generate more tax income in the longer term.
